Revenue Officers

How Tax Attorneys Help You Deal with IRS Revenue Officers

A tax attorney can help you by providing the specific documentation needed to remove or reduce tax penalties.

If you have a serious tax issue, the IRS may assign a Revenue Officer to your case. Once an RO has been assigned, the situation becomes much more serious, and you have a limited amount of time to address your tax debt. Revenue Officers use aggressive collection tactics like filing liens, levying your assets, and garnishing your wages. These collection actions tend to go much more quickly when an RO is involved than when a taxpayer’s case is still being handled by the automated system. 

Dealing with them on your own can be scary and intimidating–and if you don’t know how to respond, the situation can escalate – That’s where a tax attorney can be critical.

Key Takeaways:

• Revenue officers are assigned to cases involving seriously delinquent taxes or taxpayers who have been unresponsive to other collection efforts.
• Revenue officers have the legal authority to place liens on assets, levy assets, and otherwise attempt to collect taxes.
• An attorney can help you communicate with your revenue officer and negotiate a payment plan or settlement.
• You have a limited amount of time to handle your tax debt once a Revenue Officer is involved.

Helping You Understand the Role of a Revenue Officer

When a taxpayer falls behind on payments, their account is typically part of the automated collection process. However, when this fails, the IRS has to take more aggressive action to secure payment–and that’s when they assign a Revenue Officer. Revenue Officers are tasked with collecting past-due taxes by: 

• negotiating an offer in compromise, 
• setting up an installment agreement, or 
• proceeding with liens and levies. 

They may communicate with taxpayers directly, send notices, and follow up when communication efforts are unsuccessful. If they cannot secure voluntary payment, they can place a lien on your assets, garnish wages, and seize and sell your assets.

Do Revenue Officers Show Up Unannounced?

Not anymore. In the past, they used to show up at taxpayers’ homes or offices unannounced. Now, if they want to meet, they send an appointment request with Letter 725-B. 

Communicating with IRS Revenue Officers

When you work with experienced tax attorneys, they represent you in front of the IRS. After you sign Form 2848 (Power of Attorney), the RO will direct all communication to the attorney.

They will no longer be able to come to your home or office. All communication must go through your designated representative. 

This can dramatically reduce your stress levels, particularly if you’ve been dodging calls and letters from your RO. Additionally, if you have struggled to communicate effectively with your Revenue Officer, having all communication go through an attorney can help you avoid misunderstandings.

Establishing a Positive Relationship with Revenue Officers

Negotiating with RO on your own can be challenging. They vary quite a bit in how they handle their cases; while some take a more empathetic approach to delinquent tax cases, others may be more confrontational in their communication. If you’ve missed deadlines in the process, they may be more aggressive, which makes it even harder for you to work towards a mutually beneficial outcome.

Experienced lawyers understand the importance of establishing a good working relationship with the RO. They neutralize any negative predispositions they have and work hard to negotiate the best outcome possible for their clients. An experienced tax attorney is likely to have worked with the RO in the past, or at least have already worked with their field office. They leverage these prior relationships to the taxpayer’s advantage, resulting in a less hostile negotiation and better resolution outcome.

Handling Revenue Officer Paperwork

ROs request an enormous amount of paperwork to better understand your financial situation and ability to pay. They almost always send out Form 9297 (Summary of Taxpayer Contact) and give the taxpayer a very short amount of time to provide the requested information.

The paperwork must be filled out correctly and thoroughly. IRS Revenue Officers don’t like sloppy paperwork and presentation. 

Attorneys know how to present the paperwork in a clear and concise way. Their complete understanding of their clients’ tax problems and financial situation puts them in a position to fill out and submit paperwork quickly and accurately. They know from experience what information is going to be demanded and have all the financials and paperwork completed and prepared to submit when the RO makes contact.

Extending Deadlines

ROs impose stringent deadlines that can feel impossible to meet. For example, they might expect a taxpayer to submit unfiled tax returns faster than you can gather the information. The IRS lawyer negotiates deadline extensions so you don’t suffer the consequences of missing deadlines.

Negotiating with the Revenue Officer

Your attorney can negotiate with the RO and elevate the case to the group manager if needed, to defend the taxpayer’s interest. They can also request a Collection Due Process (CDP) hearing. The CDP brings in an objective third party. They pause current collection actions and let you negotiate with a settlement officer.

ROs generally have a lot of discretion in negotiations. They can accept or reject resolutions. They can use strong-armed negotiation tactics to force taxpayers into a settlement that causes them to pay more than they can afford.

Experienced tax attorneys are skilled negotiators. They know the tax codes and IRS procedures, which gives them the experience needed to negotiate difficult issues. They use their experience to deliver the best outcome for the taxpayer, which often includes avoiding liens, levies, and garnishments.

Filing Forms for Taxpayers

A taxpayer’s designated representative has a team to collect all the necessary information to draft and submit: 

• Forms 433-A (Collection Information Statement for Wage Earners and Self-Employed People)
• Form 433-B (Collection Information Statement for Businesses). 

ROs almost always request these statements to assess whether or not you qualify for different relief options. Tax attorneys also know the importance of updating financials regularly during negotiations until the outcome is certain.

Protecting Your Rights

Taxpayers have rights, but they may not always be aware of them. A tax attorney can ensure that your rights are protected, including your rights to:

• be informed
• qualify service
• pay only the correct amount of tax
• challenge the IRS’s position
• appeal
• finality
• privacy
• confidentiality
• retain representation
• fair and just tax system

Revenue Officers Vs. Revenue Agents

If you’re dealing with unpaid taxes, you’re probably talking to a Revenue Officer. In contrast, if the IRS audits your return, you will deal with a Revenue Agent. These are obviously two very different situations, and working with a tax attorney can help you better understand your tax issue.

Get Help with Revenue Officers

The RO’s job is to get as much of your money as they can to satisfy your tax debt. An experienced IRS lawyer thoroughly understands the IRS Collection Financial standards. They use their knowledge and experience to maximize your allowable expenses and reach the best resolution possible.

If an RO has been assigned to your account, now may be a good time to consider leveraging the services of The W Tax Group. The team of experienced tax attorneys at The W Tax Group can help you deal with them. To learn more, contact us at The W Tax Group today

Lead Tax Attorney at The W Tax Group

Stephen A Weisberg